Faced with Trump’s prices, the markets are preparing for an economic storm

It is in the interest of a president to ensure that the economy and the stock market are strong. However, the Trump administration has done the opposite.

The atmosphere on the markets was optimistic this week, largely because the president and his advisers have softened their positions, backing up some of their threats to China and the federal reserve. Periods of relative calm like the latter were a relief, but they did not last long, for good reasons.

Start with the imposition of prices by President Trump on the countries of the world, in particular his decision to trigger a trade war with China. Then consider his repeated verbal attacks against the Fed and his chair, Jerome H. Powell, who threatened the independence of the Central Bank.

Add the weakening and the wholesale dismantling of a multitude of important government agencies, the financing of universities and the open consideration of policies which could dislodge the US dollar and the bonds of the treasury from their place at the center of global finance. There are many more.

Basically, investors and business leaders are nervous and economists have profound concerns about potential damage caused to the United States as well as countries in the world.

I had a strange feeling of what we saw. It’s like watching a hurricane for training in the ocean, which could go directly to New York. Prepare for weather events like this is important. But this slow storm is something different. It is self -inflicted – launched by man in the oval office, which has the power to limit the damage, if it no longer avoids it entirely.